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Plausibility measures are structures for reasoning in the face of uncertainty that generalize probabilities, unifying them with weaker structures like possibility measures and comparative probability relations. So far, the theory of…

Quantum Physics · Physics 2015-05-07 Tobias Fritz , Matthew Leifer

The problem of quantification of emotions in the choice between alternatives is considered. The alternatives are evaluated in a dual manner. From one side, they are characterized by rational features defining the utility of each…

Artificial Intelligence · Computer Science 2022-03-07 V. I. Yukalov

In economics, risk aversion is modeled via a concave Bernoulli utility within the expected-utility paradigm. We propose a simple test of expected utility and concavity. We find little support for either: only 30 percent of the choices are…

General Economics · Economics 2023-08-07 Jacob K Goeree , Bernardo Garcia-Pola

This survey reviews recent developments in revealed preference theory. It discusses the testable implications of theories of choice that are germane to specific economic environments. The focus is on expected utility in risky environments;…

Theoretical Economics · Economics 2019-12-04 Federico Echenique

As machine learning and algorithmic decision making systems are increasingly being leveraged in high-stakes human-in-the-loop settings, there is a pressing need to understand the rationale of their predictions. Researchers have responded to…

Machine Learning · Computer Science 2020-12-07 Jonathan Dinu , Jeffrey Bigham , J. Zico Kolter

Operant keypress tasks, where each action has a consequence, have been analogized to the construct of "wanting" and produce lawful relationships in humans that quantify preferences for approach and avoidance behavior. It is unknown if…

Many biological, psychological and economic experiments have been designed where an organism or individual must choose between two options that have the same expected reward but differ in the variance of reward received. In this way,…

Quantitative Methods · Quantitative Biology 2018-09-20 Jared M. Field , Michael B. Bonsall

The goal of this article is to investigate how human participants allocate their limited time to decisions with different properties. We report the results of two behavioral experiments. In each trial of the experiments, the participant…

Neurons and Cognition · Quantitative Biology 2016-07-20 Arash Khodadadi , Pegah Fakhari , Jerome R. Busemeyer

We examine a new approach to modeling uncertainty based on plausibility measures, where a plausibility measure just associates with an event its plausibility, an element is some partially ordered set. This approach is easily seen to…

Artificial Intelligence · Computer Science 2013-02-21 Nir Friedman , Joseph Y. Halpern

It is often claimed that Bayesian methods, in particular Bayes factor methods for hypothesis testing, can deal with optional stopping. We first give an overview, using elementary probability theory, of three different mathematical meanings…

Statistics Theory · Mathematics 2021-03-24 Allard Hendriksen , Rianne de Heide , Peter Grünwald

Preference-based many-objective optimization faces two obstacles: an expanding space of trade-offs and heterogeneous, context-dependent human value structures. Towards this, we propose a Bayesian framework that learns a small set of latent…

Machine Learning · Computer Science 2026-03-31 Manisha Dubey , Sebastiaan De Peuter , Wanrong Wang , Samuel Kaski

This paper unifies two key results from economic theory, namely, revealed rational inattention and classical revealed preference. Revealed rational inattention tests for rationality of information acquisition for Bayesian decision makers.…

Theoretical Economics · Economics 2023-06-30 Kunal Pattanayak , Vikram Krishnamurthy

Challenge Theory (Shye & Haber 2015; 2020) has demonstrated that a newly devised challenge index (CI) attributable to every binary choice problem predicts the popularity of the bold option, the one of lower probability to gain a higher…

General Economics · Economics 2020-03-30 Samuel Shye , Ido Haber

The paper considers the problem of multi-objective decision support when outcomes are uncertain. We extend the concept of Pareto-efficient decisions to take into account the uncertainty of decision outcomes across varying contexts. This…

Machine Learning · Statistics 2021-10-20 Sofia Ek , Dave Zachariah , Petre Stoica

The Machina thought experiments pose to major non-expected utility models challenges that are similar to those posed by the Ellsberg thought experiments to subjective expected utility theory (SEUT). We test human choices in the `Ellsberg…

Economics · Quantitative Finance 2018-08-09 Diederik Aerts , Suzette Geriente , Catarina Moreira , Sandro Sozzo

While decision theory provides an appealing normative framework for representing rich preference structures, eliciting utility or value functions typically incurs a large cost. For many applications involving interactive systems this…

Artificial Intelligence · Computer Science 2013-02-01 Vu A. Ha , Peter Haddawy

Preferential Bayesian optimization allows optimization of objectives that are either expensive or difficult to measure directly, by relying on a minimal number of comparative evaluations done by a human expert. Generating candidate…

We report on a series of experiments concerning the feasibility of example driven modelling. The main aim was to establish experimentally within an academic environment: the relationship between error and task complexity using a)…

Human-Computer Interaction · Computer Science 2008-03-10 Simon R. Thorne , David Ball , Z. Lawson

Subjective expected utility theory assumes that decision-makers possess unlimited computational resources to reason about their choices; however, virtually all decisions in everyday life are made under resource constraints - i.e.…

Machine Learning · Statistics 2016-10-07 Pedro A. Ortega , Alan A. Stocker

We introduce an information theoretic measure of statistical structure, called 'binding information', for sets of random variables, and compare it with several previously proposed measures including excess entropy, Bialek et al.'s…

Statistics Theory · Mathematics 2010-12-10 Samer A. Abdallah , Mark D. Plumbley